The RSI 2 BPT system will go long today if the SPX closes down but remains over the long term 160 SMA. Below the 160 SMA the system doesn't take longs.
If the market closes down today, the EMA based RSI 2 will have been oversold for 2 days in a row, which is a requirement for the system - but again price must stay above the 160 SMA, which is currently at 1386, but can of course change sightly by the close
This system scales in for a potential of 4 entries of 30%, 30%, 20%, 20%, today's entry would be 30% if it occurs.
Remember that there are two versions to this reversion to the mean system, one that closes out when RSI is overbought or oversold, and one trending version that at times will attempt to hold a trade longer when conditions apply. Here are statistic reports for each version of the system
(click below the report will open ONLY in I.E. Internet Explorer as an MHTML performance report file)
Rules: goes long when price is above the 160 SMA when EMA based RSI closes below 11% for 2 days in a row. exits when RSI 2 closes at 80% or higher
Shorts - reverse, when price is below 200 SMA, shorts when RSI 2 closes above 90% for 2 days in a row, exits on a close below 40%
System scales in 4 potential entries of 30%, 30%, 20%, 20%, but each successive entry must be at a better price than the previous one i.e. entry 2 has to be better than entry 1, entry 3 has to be better than entry 2 etc.
This is a reversion to the mean system as it is only in the market 12.4% of the time
(click below the report will open ONLY in I.E. Internet Explorer as an MHTML performance report file)
EMA RSI 2 system - trending certain times
Rules: The same as the non trending system, except this system will attempt to hold trades longer at certain times - however this is still a reversion to the mean system, it's only in the market 19% of the time, the rest of the time is in cash - while the non trending system above is in the market only 12.36% of the time.
As always this is provided as information only, trade according to your plan and risk tolerance
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